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Difficulty: MediumE-Commerce and E-Business Models

An agricultural cooperative organization lists bulk unprocessed palm oil on a dedicated digital trading platform, which is subsequently purchased by an industrial soap manufacturing enterprise for factory production. Which e-commerce model is demonstrated in this transaction?

  1. Business-to-Business (B2B)Answer
  2. B
    Business-to-Consumer (B2C)
  3. C
    Consumer-to-Business (C2B)
  4. D
    Consumer-to-Consumer (C2C)

Answer

Business-to-Business (B2B)
The transaction occurs between two commercial entities—an agricultural cooperative selling bulk raw materials online and a manufacturing enterprise purchasing them for factory processing. Electronic trade conducted between business organizations is classified as Business-to-Business (B2B).

Step-by-Step Solution

1
Identify the nature of the selling entity in the transaction.
The agricultural cooperative represents a commercial producer entity selling bulk raw materials.
Determining the seller's institutional status establishes the primary side of the e-commerce transaction model.
2
Identify the nature of the purchasing entity in the transaction.
The industrial manufacturing enterprise is a corporate buyer acquiring inputs for processing.
Determining the buyer's status completes the structural classification of the trade relationship.
3
Classify the commercial relationship model.
Commercial transactions conducted electronically between two business enterprises constitute Business-to-Business (B2B) e-commerce.
Inter-firm trade conducted via online networks falls directly under the B2B framework.

Key Concept

Business-to-Business (B2B) E-Commerce Model
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Topics

E-Commerce and E-Business Models

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